The Bank of France; creation. - The Bank of France, the organization of which dates back to the year 1800 is the central financial institution of the country and the head of the banking system. It was created by Napoleon Bonaparte, with the purpose of aiding and controlling the Government finances.

Operation of the Bank of France; reserves. - The Bank of France operates through a Governing Board, two Deputy Governors being appointed by the Federal Government, and fifteen Regents being elected by the shareholders. The facilities of the Bank of France, as those of England, are extended by means of branches, both main and sub-branches, with numerous agencies, all of which are scattered throughout the country. The Bank of France is the central reserve holding bank of the nation and is also a bank for bankers. The principles of central reserves are much more in favor of the Central Bank and its branches than in the case of the English institutions. The Bank of France is also a privately owned institution, directly supervised by the Government, and is the only note issuing bank in the country, with monopolistic powers.

Credit societes; their operation. - Various incorporated societies known as "Credit Societes" are in existence. These exercise the functions of a modern bank in every particular. It is said that in France about four big banks control the major portion of the banking business and have a large share in dictating the banking policy of the country.

In France, the incorporated banking institutions, otherwise known as "Credit Societes" are engaged in the business of receiving deposits, making discounts and loans, in syndicate and security brokerage operations, and in foreign exchange business, as well. In this connection, they come into direct conflict with the various banks of the country, which has more than once brought out a strong complaint from the other banking institutions.

Private banks; their operations. - Private bankers exist in France, as in England, and in similar numbers. Their business comprises dealings in notes of the Bank of France. They engage also in the business of loaning on collateral, in discount operations, and in foreign exchange dealings.